Head-To-Head Comparison: Magellan Aerospace (MALJF) vs. The Competition

Magellan Aerospace (OTCMKTS:MALJF) is one of 103 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Magellan Aerospace to related companies based on the strength of its analyst recommendations, valuation, earnings, profitability, institutional ownership, dividends and risk.

Dividends

Magellan Aerospace pays an annual dividend of $0.15 per share and has a dividend yield of 2.8%. Magellan Aerospace pays out 15.7% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 2.7% and pay out 125.3% of their earnings in the form of a dividend. Magellan Aerospace is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Magellan Aerospace and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magellan Aerospace	N/A	N/A	5.61
Magellan Aerospace Competitors	$5.47 billion	$158.00 million	740.85

Magellan Aerospace’s competitors have higher revenue and earnings than Magellan Aerospace. Magellan Aerospace is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Magellan Aerospace and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magellan Aerospace	0	0	1	0	3.00
Magellan Aerospace Competitors	512	2754	3610	53	2.46

Magellan Aerospace currently has a consensus price target of $11.00, indicating a potential upside of 105.76%. As a group, “Aerospace & Defense” companies have a potential upside of 20.42%. Given Magellan Aerospace’s stronger consensus rating and higher probable upside, research analysts plainly believe Magellan Aerospace is more favorable than its competitors.

Insider & Institutional Ownership

3.9% of Magellan Aerospace shares are held by institutional investors. Comparatively, 40.2% of shares of all “Aerospace & Defense” companies are held by institutional investors. 20.8% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Magellan Aerospace and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magellan Aerospace	N/A	N/A	N/A
Magellan Aerospace Competitors	-142.61%	-59.92%	-12.21%

Summary

Magellan Aerospace beats its competitors on 8 of the 13 factors compared.

About Magellan Aerospace

Magellan Aerospace Corporation, through its subsidiaries, engineers and manufactures aeroengine and aerostructure components for aerospace markets in Canada, the United States, and Europe. It offers aero engine products, such as laser welded honeycomb and filament wound tubes, engine frames, frames, compressor components, bypass ducts, hot section components, and aeroengine and helicopter drive shafts, as well as other flight safety critical machined components, including discs, seals, and spacers; and aerostructures comprising landing gear systems, wing ribs, spars and skins, bulkheads and fuselage components, tailcone assemblies, composite wing and fairing structures, horizontal and vertical stabilizers, plug and nozzle, exhaust systems, crown modules, and vane boxes and transition ducts. The company also designs, engineers, and manufactures assemblies and components, such as stage rocket motors, solid propellant rocket motors, and rocket weapon systems; wire strike protection systems for helicopter safety; space solutions, including small satellite bus platforms, satellite subsystem equipment, as well as offers services for satellite assembly, integration, and testing; and aluminum and magnesium alloy sand castings, such as engine mounted accessory gearbox housings, helicopter power transmission housings, auxiliary power unit inlet and gearbox housings, engine front inlet and intermediate cases, engine front frames and fan cases, pump and accessory drive housings, and environmental control housings. In addition, the company offers maintenance, repair, and overhaul for various engine and components, as well as lifecycle management services to logistics, fleet management, and engineering services. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.